Welspun Energy Ltd said the nation will surpass its sun powered generation target by two fold over the next decade amid shortages of coal and natural gas.
Mr Vineet Mittal MD of the company, a unit of Welspun Group backed by Apollo Global Management LLC co founder Leon Black said that “A lot of investment planned for thermal power projects will go to renewables. Most people don’t realize this yet but India’s power mix will change considerably.”
The company joins other developers in diverting new investment to renewable projects. CLP Holdings Ltd India’s largest wind farm developer, said last month it’s more likely to fund renewable projects after fuel shortfalls left a new coal fired plant dead cold since April and cut generation at a gas-fired facility in half.
The energy unit of the group that makes pipes, builds roads and runs the UK supplier of towels to the Wimbledon tennis championships, has signed agreements over the past year to build more than 1,500 megawatts of solar and wind farms that will require about INR 98 billion of investment based on current capital expenditure costs. In contrast, it has yet to complete a coal or gas based plant.
The government has set a goal of installing 20 gigawatts of solar capacity by 2022. Welspun estimates that it’s more likely to reach 40 gigawatts as renewables close in on the cost of fossil fuel-based power and answer a need for a reliable source of electricity in a nation beset by blackouts.
India will need to add 169 gigawatts of total power capacity, equivalent to that of 154 nuclear plants, over the next five years to maintain an economic growth rate of 9%, according to the nation’s Planning Commission. Gross domestic product rose 5.3% in the three months ended March, the slowest pace in nine years.
Mr Rohit Singh a Mumbai based analyst with IDBI Capital Market Services Ltd said that “The kind of power requirements that India has cannot be met only with renewables. You need power 24 hours around-the-clock,” something only coal, gas and nuclear plants can provide, while wind and solar are too expensive.”
Mr Mittal said that the power ministry told developers not to plan any new gas- based projects until at least 2015 because there won’t be enough domestic supply, according to a March 14 note sent to companies. The Central Electricity Authority plans to revise guidelines so that new coal plants are designed to import 50 percent of their fuel, up from 30%
Mr Vineet Mittal MD of the company, a unit of Welspun Group backed by Apollo Global Management LLC co founder Leon Black said that “A lot of investment planned for thermal power projects will go to renewables. Most people don’t realize this yet but India’s power mix will change considerably.”
The company joins other developers in diverting new investment to renewable projects. CLP Holdings Ltd India’s largest wind farm developer, said last month it’s more likely to fund renewable projects after fuel shortfalls left a new coal fired plant dead cold since April and cut generation at a gas-fired facility in half.
The energy unit of the group that makes pipes, builds roads and runs the UK supplier of towels to the Wimbledon tennis championships, has signed agreements over the past year to build more than 1,500 megawatts of solar and wind farms that will require about INR 98 billion of investment based on current capital expenditure costs. In contrast, it has yet to complete a coal or gas based plant.
The government has set a goal of installing 20 gigawatts of solar capacity by 2022. Welspun estimates that it’s more likely to reach 40 gigawatts as renewables close in on the cost of fossil fuel-based power and answer a need for a reliable source of electricity in a nation beset by blackouts.
India will need to add 169 gigawatts of total power capacity, equivalent to that of 154 nuclear plants, over the next five years to maintain an economic growth rate of 9%, according to the nation’s Planning Commission. Gross domestic product rose 5.3% in the three months ended March, the slowest pace in nine years.
Mr Rohit Singh a Mumbai based analyst with IDBI Capital Market Services Ltd said that “The kind of power requirements that India has cannot be met only with renewables. You need power 24 hours around-the-clock,” something only coal, gas and nuclear plants can provide, while wind and solar are too expensive.”
Mr Mittal said that the power ministry told developers not to plan any new gas- based projects until at least 2015 because there won’t be enough domestic supply, according to a March 14 note sent to companies. The Central Electricity Authority plans to revise guidelines so that new coal plants are designed to import 50 percent of their fuel, up from 30%
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